Housing supply is piling up in Florida and Texas as HOA and insurance fees jump, Redfin says

• The condo market looks stuck in Florida and Texas, according to Redfin.
• Condo inventory has risen 53% in Florida and 42% in Texas since last year.
• Buyers have been scared away from both states, partly because of rising HOA fees and insurance premiums.

Housing inventory is piling up in Florida and Texas, in part because homeowners-association fees and home insurance costs are scaring buyers away from the condo market, according to Redfin.

The real-estate listings site says the number of available condos has soared in key metros in the two states over the past year, one symptom in an overarching trend of homebuyers getting cold feet amid high prices and rising costs associated with owning a home.

Condo inventory soared 53% year over year in Florida in July, according to Redfin data, and it climbed 42% in Texas in the same timeframe. Those increases far exceed the national average, with condo inventory rising 27% nationally in July.

Jacksonville, Florida, saw the steepest climb in inventory, with the supply of condos soaring 81% from levels last year. That was followed by Orlando and Fort Worth, Texas, where condo supply soared 68% and 65%, respectively, over the past year.

Condo buyers have been put off by rising HOA fees and insurance premiums in both states, Redfin says. It found in a previous analysis that HOA fees had climbed more than 15% from levels last year in key Florida metros.

Natural disasters in the two states have meanwhile pushed up insurance premiums. A Capital Economics report found that property insurance costs in Texas and Florida had grown at the fastest pace in 20 years.

"The condo market isn't moving," Steven Weiss, a Redfin agent in Tampa, said in a statement. "It's much more difficult to sell a condo. Buyers are aware we're at somewhat of a tipping point for condos, and that their value may continue to decline as HOA fees rise and people grow more wary of buying in a waterfront building," he added.

Condo prices haven't seen a significant decline yet, with the price of condos in Jacksonville and Orlando seeing a mild, single-digit fall over the past year. In some metros, such as Fort Worth, prices have actually increased.

It's a different story for house prices though, which have been pushed lower in both states as supply starts to outweigh demand. Redfin said in a June report that more than 6% of homes nationwide were seeing price declines, the fastest pace of price cuts since 2022.